Question 1

What is dollar-cost averaging (DCA) in gold?

Accepted Answer

Dollar-cost averaging (DCA) in gold means investing a fixed amount at regular intervals (weekly, monthly) regardless of the gold price. When prices are low you buy more ounces; when prices are high you buy fewer. This strategy reduces the impact of price volatility and removes the need to time the market.

Question 2

Is DCA a good strategy for buying gold?

Accepted Answer

DCA is widely regarded as a sound approach for accumulating gold over time, particularly for investors who cannot predict short-term price movements. Historical backtests show DCA into gold over 5-10 year periods has generally produced positive real returns, though past performance does not guarantee future results.

Question 3

How often should I invest in gold using DCA?

Accepted Answer

Monthly DCA is the most practical cadence for most investors, as it aligns with pay cycles and minimises transaction costs. Weekly DCA provides more price averaging but may be impractical for physical gold due to dealer minimums and premiums. For gold ETFs, any frequency is feasible.

If you'd invested NZ$500/month in gold since 2015, here's exactly what happened.